As states work to implement the Affordable Care Act (ACA) and improve Medicaid and CHIP for current beneficiaries, the Medicaid and CHIP Payment and Access Commission (MACPAC) made 2 recommendations Friday to Congress on eligibility policy.

MACPAC's March 2013 Report to the Congress on Medicaid and CHIP reflects the key priorities facing program administrators: implementing Medicaid eligibility provisions; managing the policy and operational interactions among Medicaid, CHIP, and coverage through new health insurance exchanges; and pursuing delivery system and payment innovations for individuals dually enrolled in Medicare and Medicaid, who are among the highest need and highest cost enrollees in both programs.

In its report, the commission recommends that Congress create a statutory option for states to implement 12-month continuous eligibility for children enrolled in CHIP and adults enrolled in Medicaid, as is now the case for children in Medicaid. This recommendation is designed to reduce frequent enrolling and disenrolling from different health plans in a short period and decrease the administrative burden of the eligibility determination process. It would enable states to enroll eligible individuals for a full year, regardless of changes in income. The commission is making the recommendation to ensure that the option, which would otherwise be removed under new income-counting eligibility standards, remains available to states.

The second recommendation calls for Congress to permanently fund transitional medical assistance (TMA), which provides additional months of Medicaid coverage to millions of families who might otherwise become ineligible and uninsured due to an increase in earnings. MACPAC's recommendation would allow states that expand Medicaid to the new adult group to opt out of TMA. If the recommendation were implemented, it would provide certainty that funding will be available for states that choose not to expand eligibility, and it would reduce administrative burden for states that do expand.

The report also continues the commission's work on people who are dually eligible for Medicare and Medicaid. This group is of great interest to Congress because of the complexity and cost of the health care needs of "dual eligibles."